Illustrations of accounting policies-financial statement, Financial Accounting

Illustrations of Accounting Policies

A Ltd., has decided to change its policy of writing off borrowing costs to capitalizing the same. As at 31st December, 2003, the company had written off borrowing costs amounting to £200,000. During the year ended 31/12/04.  The company reported profit for the period of £450,000 but after charging borrowing costs of £50,000.  As at 31/12/03 the retained profits were £1,500,000. Other transactions were:-

•    Transfer from revaluation reserve on sale of PPE - £40,000
•    Transfer from retained profits to general reserve - £50,000
•    Interim dividends paid - £200,000

Required: 
Prepare the statement of changes in equity extract for the year-ended 81/12/04

 

Retained profits

 

£

Balance as at 1.1.2004

1,500,000

Change in accounting policy

  200,000

Balance as restated

1,700,000

Transfer from revaluation reserve on sale of PPE

40,000

Profit for the period (450,000 + 50,000)

500,00

Transfer to general reserve

(50,000)

Interim dividends paid

(200,000)

Balance as at 31/12/2004

1,990,000

Posted Date: 12/12/2012 12:51:25 AM | Location : United States







Related Discussions:- Illustrations of accounting policies-financial statement, Assignment Help, Ask Question on Illustrations of accounting policies-financial statement, Get Answer, Expert's Help, Illustrations of accounting policies-financial statement Discussions

Write discussion on Illustrations of accounting policies-financial statement
Your posts are moderated
Related Questions
1. Kinetics is considering a project that has a NINV of $874,000 and generates net cash flows of $170,000 per year for 12 years. What is the NPV of this project if Kinetics' cost o

How can a person tell whether an entry to an expense account is payment for a legitimate expenditure or a means of concealing a theft of cash?

The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership's being liquidated: cash, $25,426; other assets, $130,439; liabilities, $22,198; Marilyn


First Meeting of creditors The Official Receiver must convene this meeting within 60 days of the receiving order, unless the court extends the time, by giving notice to each c

Q. Explain about Mutual Fund? Mutual Fund - Investment Companythat usually offers its shares to general public and invests the proceeds in a diversified portfolio of SECURITIES

How do you create an Excel document with several financial statements, all linked together with specific financial data?

some lectures on branch accounting chapter of advance accounting or way how to do journal entries or way of branch accounting??i m totally unaware of this chapter and want to study